The Incomes Register is a national electronic database for the reporting of incomes information, such as payroll, pension and benefit information on each income earner. Since 1 January 2019, all employers and other income payers have reported their payroll information directly to the Incomes Register. From the beginning of 2021, pension and benefit information will also be reported to the Incomes Register.
What to do when your employee retires
The reporting of earnings information to the Incomes Register continues even after an employee retires on old-age pension. The necessary earnings information is transferred from the Incomes Register directly to the relevant employment pension provider. The pension provider cannot submit reports or make corrections in the Incomes Register on your behalf.
In order to receive old-age pension, the individual must have reached the relevant pensionable age and the valid employment or service relationship must end prior to the start of the pension. In addition to earnings information, the ending date of the employment relationship and reason for termination must be reported to the Incomes Register in order for the retiring employee to be granted old-age pension.
Payment of the final salary
At the end of the employment relationship, the employee can be paid a final salary that includes, for example, any remaining holiday bonuses or overtime compensation.
If a final salary is paid to the employee at the end of the employment relationship, the termination details of the employment relationship must be reported in the same report with the final salary information. If the earnings are paid in several instalments during the first month of pension, the termination details of the employment relationship must be reported in connection with each separate earnings payment report.
Working alongside old-age pension
The employee can continue working after reaching his or her retirement age. The earned income for work done while receiving pension is reported to the Incomes Register like any other income.
If the employee continues working after reaching the age when his or her insurance obligation ends (68 to 70 years), the employee is no longer insured for a pension and therefore the employee’s share of the pension contribution is not to be withheld from his or her wages.
When a person works after reaching the age when his or her insurance obligation ends, it is treated as an exceptional insurance case. On the earnings payment report this is to be reported as “No insurance obligation”.